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Internal;
The sales & Marketing Organization
 - The sale’s rules seem be decreased .
 - Increasing in order to be inventory impact to incentives.
 - Not clear that the cost of supply chain will be reduced.
 - Problems of customer stock- out and replacement by
   competitors.
 - It seem to JITD not effective in running trade promotions.
 - Loss of chance to achieve sale volume via promotions along
   canvass periods.
 - Concern of Barilla’s manufacturing not flexibility to planning
   through JITD Program that cause of inventory load.
 - To afraid that cannot keep good relation with retailers.
External Party;
Distributors ( GDs & DOs )
 - Concern to interrupting in their warehouse and figures.
 - It’s not clear that JITD will reduce cost of inventory Mnt.
 - The benefit from trade promotion was decreased.
 - Incentives including DC fee seem decrease cause of not full
   tuck load.
 - To afraid that JITD complicate to their Inventory
   Management System.
External;
Retail outlets
 - Benefit from inventory which discount in promotion period is
   limited.
 - To loss sale’s opportunity from out off stock.
Barilla Distribution Patterns (original)
                                                               Ordering
                                                                Delivery




                                   TL = truck load   LTL = Less-truck load
Barilla Distribution Patterns (new propose)
                                                                    Ordering
                                                                     Delivery




   Barilla CDs and Forecasting Center




                                        TL = truck load   LTL = Less-truck load
Focus on External Distributors


Original;
- Contact to some DCs for get Shipment Data.

Propose;
- Find out target DCs / Outlets.
- Implement POS System to the current target.
    -Try to prove the benefits and compare with
    original proposal.
 Inventory Cost = Holding Cost + Ordering Cost + Penalty Cost

- Collecting Data and Analysis to evaluate the
  forecasting data.
- Take Care about incentive on a level with their
  received.
Focus on Retail Outlets

Original;
- Not to directly order to Barilla.
- Order to DCs via fax.
Propose;
- Introduce POS System / Create Demand.
- Support POS and Computer Linkage to the prospects.
- Try to prove the benefits and compare with original
  proposal.
- Collecting Data and Analysis to evaluate the
  forecasting data.

- Take Care about incentive on a level with their
  received.
Focus on Sales& MKT Organization

Original;
- Management & achieve sales at retail store, almost of work time.

Propose;
- Educate / try to create positive attitude.
- Assign to contact new outlets for get attractive
  incentive with smart work.
- Assign MKT to effort strategies achieve new MKT
  channels.
- Update the progressive of JITD implementation
  continuously.

- Use the shipment data from JITD Program for
  efficiency to Manufacturing Plan.

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JITD Proposal Resolution

  • 1.
  • 2. Internal; The sales & Marketing Organization - The sale’s rules seem be decreased . - Increasing in order to be inventory impact to incentives. - Not clear that the cost of supply chain will be reduced. - Problems of customer stock- out and replacement by competitors. - It seem to JITD not effective in running trade promotions. - Loss of chance to achieve sale volume via promotions along canvass periods. - Concern of Barilla’s manufacturing not flexibility to planning through JITD Program that cause of inventory load. - To afraid that cannot keep good relation with retailers.
  • 3. External Party; Distributors ( GDs & DOs ) - Concern to interrupting in their warehouse and figures. - It’s not clear that JITD will reduce cost of inventory Mnt. - The benefit from trade promotion was decreased. - Incentives including DC fee seem decrease cause of not full tuck load. - To afraid that JITD complicate to their Inventory Management System.
  • 4. External; Retail outlets - Benefit from inventory which discount in promotion period is limited. - To loss sale’s opportunity from out off stock.
  • 5. Barilla Distribution Patterns (original) Ordering Delivery TL = truck load LTL = Less-truck load
  • 6. Barilla Distribution Patterns (new propose) Ordering Delivery Barilla CDs and Forecasting Center TL = truck load LTL = Less-truck load
  • 7.
  • 8. Focus on External Distributors Original; - Contact to some DCs for get Shipment Data. Propose; - Find out target DCs / Outlets. - Implement POS System to the current target. -Try to prove the benefits and compare with original proposal. Inventory Cost = Holding Cost + Ordering Cost + Penalty Cost - Collecting Data and Analysis to evaluate the forecasting data. - Take Care about incentive on a level with their received.
  • 9. Focus on Retail Outlets Original; - Not to directly order to Barilla. - Order to DCs via fax. Propose; - Introduce POS System / Create Demand. - Support POS and Computer Linkage to the prospects. - Try to prove the benefits and compare with original proposal. - Collecting Data and Analysis to evaluate the forecasting data. - Take Care about incentive on a level with their received.
  • 10. Focus on Sales& MKT Organization Original; - Management & achieve sales at retail store, almost of work time. Propose; - Educate / try to create positive attitude. - Assign to contact new outlets for get attractive incentive with smart work. - Assign MKT to effort strategies achieve new MKT channels. - Update the progressive of JITD implementation continuously. - Use the shipment data from JITD Program for efficiency to Manufacturing Plan.